EQUITIES
Asia-Pacific markets mostly lower on Asian afternoon trade. The South Korea’s KOSPI led the loss by almost -1%. Japan’s Nikkei 225 down -0.73%, Australia’s S&P/ASX 200 shed -0.39%, and Singapore’s Straits Times index fell -0.22%. Mainland Chinese stocks were also lower, with the Shanghai composite down -0.83%, and Hang Seng index in Hong Kong at -0.22% lower.
Overnight, The Dow Jones Industrial Average fell 97.97 points, or 0.35%, to 28,210.82, the S&P 500 lost 7.56 points, or 0.22%, to 3,435.56 and the Nasdaq Composite dropped 31.80 points, or 0.28%, to 11,484.69.
OIL
Oil prices dropped, adding to sharp losses overnight, after higher U.S. gasoline inventories pointed to a deteriorating outlook for fuel demand as coronavirus cases soar. Brent crude futures traded to $41.56 a barrel, while U.S. crude at $39.75.
On Wednesday, Brent closed at $41.73 per barrel, while WTI futures ended at $40.03 per barrel.
CURRENCIES
Against a basket of major peers, the dollar extended its losses for the third consecutive day, with talks of US fiscal stimulus between the Treasury Secretary Steve Mnuchin and House Speaker Nancy Pelosi being a key factor for dollar weakness. It was last at 92.77.
Australia dollar was last fetching 0.7089 while the kiwi fell 0.32 to 0.6634.
GOLD
Spot gold currently trading at $1,912.60 per ounce, while stands around $1,916.20 per ounce for gold futures. Previously closed at $1,924.30 and $1,929.50, respectively.
Silver trading at $24.73, platinum trading at $877.00 and palladium trading at $2,291.00.
ECONOMIC OUTLOOK
Asian shares fell on Thursday after the IMF downgraded its growth forecast for Asia-Pacific and investors fretted over the slow pace of U.S. stimulus talks, plus a surge in global cases of COVID-19.
The IMF on Wednesday downgraded its forecast for Asia-Pacific to -2.2% in 2020, noting “the worst outcome for this region in living memory.”
U.S. gasoline stocks rose by 1.9 million barrels in the week to Oct. 16, the EIA said in its latest report, compared with expectations for a 1.8 million-barrel drop.
Johnson & Johnson and AstraZeneca's COVID-19 vaccine to resume as early as this week. The trials were paused previously to allow time to investigate possible safety signals.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 41.171 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 1.13 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 105.556 and 106.007.
- Support line of 104.096 and 103.645.
Commentary/ Reason:
- The dollar was 0.14% higher against the yen at 104.715 on Thursday, having marked a 1-month low overnight at 104.341.
- Dollar weakness is the main bullish factor for the safe haven yen on Wednesday, along with hawkish BOJ comments.
- The yen rallied Wednesday after BOJ member Sakurai said there is no need to rush a decision on whether the BOJ needs to extend its pandemic stimulus measures and that the BOJ has time to carefully consider if it needs to extend the measures beyond March.
